Dash is shedding gains at press time, but looks set to defend $600 levels.
As per CoinMarketCap, the world’s fifth largest cryptocurrency by market capitalization is trading at roughly $685 – down 9.3 percent on the day – after rising to an all-time high of $826.95 at 09:59 UTC.
Also notable is that trading volumes have hit a record high of $4.84 billion, suggesting the rally might be here to stay.
A look at the individual markets shows that the rally is being fueled by Korean desks. Trading volume in DASH/KRW pair offered by Bithumb, one of the largest exchanges in South Korea, has gone up 30 percent in the last 24 hours.
One reason may be the asset’s positioning in the news, with groups associated with the protocol announcing earlier this week they would partner to help solve Zimbabwe’s economic crisis.
But whatever the reason, price chart analysis also favors further upside, albeit after a healthy technical correction to $600 levels.
The above chart shows:
- A bearish price-relative strength index (RSI) divergence.
- 50-MA, 100-MA, and 200-MA are sloping upwards and positioned one below the other in favor of the bulls.
- The rising trendline (blue line) could offer support at $583 levels.
On the chart above:
- 5-MA and 10-MA are curled upwards in favor of the bulls.
- The RSI is overbought.
- Two consecutive candles with higher shadows (big gap between the close and intra-day high) indicate bull market exhaustion.
- Prices are struggling to hold gains above $696 (161.8% Fib extension).
Dash could drop to $600-$580 levels, courtesy of the bull market exhaustion on the daily chart and the bearish price RSI divergence on the 4-hour chart.
The base appears to have shifted higher to $600 levels – i.e. dips below $600-$580 could be short-lived as indicated by a pattern of higher lows (rising trend line on the 4-hour chart) and upward sloping moving averages.
Trampoline image via Shutterstock
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.